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This study provides further empirical evidence on pricing by international airline alliances. The paper covers a long sample period, which runs from 1997 to 2016, and it supplements the usual USDOT fare data with confidential fare data reported by the foreign alliance partners of US carriers....
Persistent link: https://www.econbiz.de/10012022210
This paper sheds new light on the role of communication for cartel formation. Using machine learning to evaluate free … cartel formation and indirect attempts to collude tacitly. We document that firms are less likely to communicate explicitly … sanctions on communication reinforces the direct cartel-deterring effect of sanctions as collusion is more difficult to reach …
Persistent link: https://www.econbiz.de/10013418834
We consider the interaction between an incumbent firm and a potential entrant, and examine how this interaction is affected by demand fluctuations. Our model gives rise to procyclical entry, prices, and price-cost margins, although the average price in the market can be countercyclical if the...
Persistent link: https://www.econbiz.de/10010367376
This paper studies how selling constraints, which refer to the inability of firms to attend to all the buyers who want to inspect their products, affect the equilibrium price and social welfare. We show that the price that maximizes social welfare is greater than the marginal cost. This is...
Persistent link: https://www.econbiz.de/10014320135
This paper analyzes dynamic cartel formation and antitrust enforcement when firms operate in demand-related markets. We … show that cartel prosecution can have a knock-on effect: desisting a cartel in one market reduces profits and cartel … stability and leads to the break-up of the cartel in the adjacent market. Cartel prosecution can also have a waterbed effect …
Persistent link: https://www.econbiz.de/10003850139
Persistent link: https://www.econbiz.de/10003854513
We propose a semi-cooperative game theoretic approach to check whether a given coalition is stable in a Bayesian game with independent private values. The ex ante expected utilities of coalitions, at an incentive compatible (noncooperative) coalitional equilibrium, describe a (cooperative)...
Persistent link: https://www.econbiz.de/10003974150
In this paper we analyze cartel formation and self-reporting incentives when firms operate in several geographical …-reporting by cartel members. -- cartel formation ; multi-market contact ; leniency programs ; international antitrust cooperation …
Persistent link: https://www.econbiz.de/10003955227